The following is a summary of the Veeco Instruments Inc. (VECO) Q3 2024 Earnings Call Transcript:
Financial Performance:
Veeco reported Q3 revenue of $185 million, highlighted by record revenues in the semiconductor business, increasing 26% year-over-year and 13% sequentially.
Non-GAAP operating income was $31 million and non-GAAP EPS was $0.46.
Gross margin reached approximately 44%.
Business Progress:
Veeco's semiconductor business achieved record revenue, driven by significant orders for wet processing systems influenced by AI applications. Key customers include leading foundries, HBM manufacturers, and OSATs.
The company introduced the new IBD300 system that enhances film properties and reduces resistivity for logic and memory applications.
In advanced packaging lithography, increasing orders are driven by a surge in AI and mobile applications.
Opportunities:
The semiconductor business is poised for further growth in 2025, with AI and high-performance computing driving demands.
Expansion in the ion beam deposition for EUV mask blanks, as new material technologies permit continued device scaling.
The advanced packaging market is expected to see sustained growth owing to the demands from AI and 3D packaging technologies.
Risks:
The recent slowdown in the semiconductor market in China is expected to lead to a reduction in revenue from this region in 2025.
Potential revenue decrease in the data storage market, anticipated to be around $60 million to $70 million in 2025 due to a lack of investment in capacity expansion from customers.
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